Salem Hospital laying off workers Officials say cuts target managers, in an effort to keep staff for patient care Download a PDF of this story By Ruth Liao • Statesman Journal • February 19, 2010
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Salem Health and its Salem Hospital have eliminated at least 43 full-time equivalent positions, and more employees are working shorter weeks.
For the first time in nine years, Salem's largest private employer is facing cutbacks to avoid a budget deficit, but the hospital does not expect to cut any more jobs.
"We believe we can complete the year with the budget balanced and without needing to make more reductions," Salem Health spokeswoman Julie Howard said.
Since October, 43.4 full-time equivalent positions, made up of both part-time and full-time employees, have been cut, Howard said.
Last October, hospital officials announced a plan to reduce about $9.3 million in expenses. The initial goal was to reduce about $6 million in labor expenses and $3 million in non-labor expenses.
Now, the hospital looks to save up to $16.3 million in total expenses, after an additional $7 million in labor cuts were identified by February, Howard said.
The hospital did not save as much in non-labor expenses as quickly as was expected, and also made additional reductions in staffing.
The hospital first faced a trend of losses last summer. As of Jan. 31, the hospital's operating margin was at a break-even point, Howard said.
The not-for-profit hospital employs 3,100 full-time equivalent positions. The eliminated jobs affects about 1.4 percent of the hospital's work force.
Howard said patient care and quality of services is not expected to be affected by the staff cuts.
"They are looking to take the fewest labor reductions and take really as little as possible that would impact patient care," she said.
The vast majority of cut positions were administrative or support roles; 12 were either directors, managers or supervisors, Howard said.
The hospital shed another 45.7 full-time equivalent positions that were currently vacant.
Salem Hospital also seeks to reduce a total of 24.9 full-time equivalent positions by having some employees shorten their hours by 10 percent or more, Howard said.
West Valley Hospital in Dallas, which is part of Salem Health, has not been affected by cuts.
